China's Fengbao Special Steel Reduces Ferro-Vanadium Tender Price Amid Weakening Demand

In response to declining steel demand and narrowing profit margins, Chinese private-sector steelmaker Henan Fengbao Special Steel has lowered its ferro-vanadium tender price for August deliveries. On August 8, the company purchased 15 tons of 50% grade ferro-vanadium at a rate of 87,000 yuan per ton (equivalent to $24.27 per kilogram of vanadium content), marking a reduction of 1,000 yuan per ton from the price set in mid-July.

The downturn in ferro-vanadium prices has persisted since late July, driven by decreasing demand from steel mills. Many mills have begun maintenance and reduced output in anticipation of new national standards for steel reinforcement bars (rebar), leading to a decrease in spot inventories.

This price cut aligns with a broader trend observed among alloy producers, who have also lowered their offers in the wake of reduced purchases from both steelmakers and trading firms, compounded by falling costs of pentoxide flake feedstock.

Notably, state-owned Fushun Special Steel secured 100 tons of 50% grade alloy on August 8 at 86,650 yuan per ton, reflecting a significant drop of 11,350 yuan per ton compared to a previous tender in late May. Fushun typically opts for 80% grade alloy in its steel production.

Similarly, private-sector Nanjing Iron and Steel (Nisco) purchased 90 tons of the alloy on August 9 at 87,200 yuan per ton, down sharply by 28,300 yuan per ton from a late July tender. State-owned Jiangxi Xinyu Iron and Steel also lowered its purchase price on the same day, acquiring 32 tons at 87,000 yuan per ton, a reduction of 5,200 yuan per ton from its early July tender.

Major suppliers, including Sichuan Chuanwei, Sichuan Desheng, and Chengde Jianlong, have yet to finalize their selling prices for August deliveries to regular consumers.